Gillard urges greater cooperation for Asia's stability

Prime Minister Julia Gillard says the Chinese president has assured her China does not want to see conflict on the Korean peninsula.

Ms Gillard has held her first leaders meeting with Xi Jinping on the sidelines of the Bo'ao Asia Forum on Hainan Island.

They discussed putting in place a more formal arrangement for leaders talks, the economic and trade relationship and regional security.

Ms Gillard said there was a "spirit of optimism" throughout the meeting, her first with Mr Xi since China's leadership transition last month.

She said she conveyed to the president that Australia was a reliable partner in the supply of mineral resources and energy and the pair re-affirmed their commitment to pursue a free trade agreement between the two countries.

"It was a very positive discussion, a substantive discussion and it has left me with a real sense of confidence, not just about the state of the relationship now, but about how optimistic we can be for the future of the relationship," she said after the meeting.

"Of I said that a comprehensive free trade agreement would support the further diversification and growth of our economic relationship.

"I took the opportunity to brief the president about our white paper on Australia in the Asian Century and its policy framework for expanding and diversifying the links between our countries and the countries of the region of Asia, not just economic links, but also education links - science, cultural and arts links."

Ms Gillard says Australia and China share the same concerns about North Korea.

"The president indicated that he shared those concerns about current tensions on the Korean Peninsula that the priority here is to prevent further escalation and China is urging calm and restraint," she said.